Dynatrace Inc
DT
$49.57 -0.62%
Exchange: NYSE | Sector: Technology | Industry: Software Application
Q1 2026
Published: Aug 6, 2025

Earnings Highlights

  • Revenue of $477.35M up 19.6% year-over-year
  • EPS of $0.16 increased by 23.1% from previous year
  • Gross margin of 82.1%
  • Net income of 114.83M
  • ""Our largest GSI partners' ARR contribution in the first quarter has more than tripled year-over-year," said CEO Rick McConnell, reflecting growth driven by strategic partnerships." - Rick McConnell

Dynatrace Inc (DT) Q1 2026 Financial Results: Strong Growth in Subscription Revenue and Customer Acquisition

Executive Summary

Dynatrace Inc. reported a robust financial performance for Q1 2026, with total revenue reaching $477.3 million, reflecting a year-over-year increase of 19% and a quarter-over-quarter growth of 7.23%. Subscription revenue, which constitutes the majority of the company's income, also grew by 19%, fueled by a strong annual recurring revenue (ARR) of $1.82 billion, representing a 16% growth year-over-year. The management's focus on end-to-end observability solutions continues to resonate well with customers, as reflected in their strong commitment to the platform and the increasing adoption of its AI-driven capabilities. The company aims to leverage its momentum in consumption growth as it navigates a dynamic technological landscape.

Key Performance Indicators

Revenue

477.35M
QoQ: 7.23% | YoY:19.57%

Gross Profit

392.14M
82.15% margin
QoQ: 8.91% | YoY:20.86%

Operating Income

62.34M
QoQ: 45.26% | YoY:48.32%

Net Income

114.83M
QoQ: 192.15% | YoY:197.32%

EPS

0.16
QoQ: 23.08% | YoY:23.08%

Revenue Trend

Margin Analysis

Key Insights

  • Total Revenue: **$477.3 million** (YoY: +19%, QoQ: +7.23%)
  • Subscription Revenue: **$458 million** (YoY: +19%)
  • Annual Recurring Revenue (ARR): **$1.82 billion** (YoY: +16%)
  • Net Income: **$114.8 million** (YoY: +197.32%)
  • Earnings Per Share (EPS): **$0.16** (YoY: +23.08%)

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 477.35 0.16 +19.6% View
Q4 2025 445.17 0.13 +16.9% View
Q3 2025 436.17 1.19 +19.5% View
Q2 2025 418.13 0.15 +18.9% View
Q1 2025 399.22 0.13 +19.9% View